One of the most remarkable events in the financial sector over the past year or so has been the rally in gold. It seems that it is likely to continue this year. The trade war between the United States and China had been the reason for the rally last year. But in the New Year, tensions in the Middle East have been a big trigger.
After Iran bombed United States facilities in the Middle East, gold rocketed past $1600 an ounce. That has also brought gold stocks into focus in a big way. Here is a look at 3 gold stocks to watch heading into the new week.
Gold Stocks To Watch: Yamana Gold
The first gold stock that could be worth tracking in the present circumstances is Yamana Gold Inc. (AUY – Free Report), which had an impressive time in 2019 and could be considered during the course of this gold rally as well.
Yamana stock gained as much as 61% throughout the course of 2019 and in addition to that, it should also be noted that the company is also in the process of expanding its operations considerably.
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Also, the company’s generous dividend policy has also become a cornerstone of the stock’s good performance. Needless to say, Yamana has maintained trading levels above $3.50 since the start of 2020. Can that trend continue into the rest of this quarter?
Gold Stocks To Watch: DRDGOLD
Another gold stock to watch during this fresh gold rally is DRDGOLD Ltd. (DRD – Free Report). On Friday, it emerged that Sibanye-Stillwater (SBGL – Free Report) exercised the option to take up a further 12% stake in DRDGold. After exercising this option, Sibanye-Stillwater’s stake in the company now stands at 50.1%.
That is a significant development for DRDGold. The company mines gold from its two mines located in South Africa and it remains to be seen what effect the latest developments have on the company’s stock.
It is likely that investors will keep a keen eye on the stock in light of these developments. DRD stock jumped 10.60% to $6.06 in Friday’s trading session and made a new 52-week high of $6.09.
Gold Stocks To Watch: Newmont Corporation
In the news on January 13 was Newmont Corporation (NEM – Free Report). Starting the week, the company received a favorable rating by analysts. B. Riley upgraded Newmont to a “Buy”. This is a jump from its previous “Neutral” rating. In addition, news out of Vancouver sparked further interest in the company.
Mirasol Resources announced that it had signed an option agreement with subsidiaries of Newmont to acquire the Inca Gold Project in Chile. Mirasol now has the opportunity to increase its portfolio. Mirasol’s President and CEO, Norm Pitcher, stated: “We are pleased to add the Inca Gold Project to our portfolio and to work toward delivering a second Mirasol-funded exploration and drilling program in Chile.
“This is an attractive transaction allowing Mirasol to acquire Inca Gold by exploring and drilling the property. If our exploration demonstrates the potential for a Newmont size target, the agreement will allow them to earn back 70% of the project by reimbursing our costs and investing in significant additional exploration expenditures.”
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